July 2016 — Movements in the SMB Index

A recap of SMB Index performance for July 2016

The SurePath SMB Index
The SCP SMB Index closed July 2016, once again outperforming other benchmark indices, for the 3rd consecutive month.
Summary of the SCP SMB performance vs other benchmark indices

July saw all major indices gaining ground — the Nasdaq gained 6.6% in the month of July leading the pack, with the SurePath SMB Index adding 4.8% over June.

Returns since inception (indexed at Jan 4, 2016)

Since the inception of the SCP SMB Index in January 4, 2016 (where 100% is no change), here are the returns till July 29, 2016:

  • SCP SMB Index — 115.74%
  • S&P 500–108.00%
  • Nasdaq — 105.28%
  • Dow Jones — 107.48%

Monthly gains

During the month of July, the SCP SMB Index rose 4.8%, closing the month at $115.46 up from $110.13 at the end of June 2016.

In comparison, during the month of June, other benchmark indices made the following gains:

  • the S&P 500 was up 3.6% from the end of June
  • the Nasdaq was down 6.6% from the end of June
  • the Dow Jones was up 2.8% from the end of June

Drivers of movement

The SCP SMB Index is weighted based on the market capitalization of the 35 companies that are included in the index. The market cap of the top 5 companies (by market cap) account for ~64% of the total market cap of all 35 companies and therefore the movement of these 5 companies influence the SMB Index as a whole. We began the index with 42 companies, but have lost 5 to acquisitions and removed 2 others after determining that they did not completely fit with the SMB focus of the index.

In July 2016, 2/5 of these companies experienced significant monthly gains led by First Data Corp gaining ~12%. While ADP declined ~-3.2%.

Here are the top 5 gainers and losers for July

Groupon led the gainers climbing 48% in July after crushing its Q2 earnings which saw the stock gain 30% the day following the release alone! Stamps.com led the list of top 5 losers in June, falling 13% on poor earnings announcement to close out the month.

Here’s how all 35 companies stacked up in the month of July

You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index

At SurePath Capital Partners we help startups raise the capital needed to become market leaders. When the time is right, we help our clients achieve profitable, deliberate exit strategies. We only work with startups in the SaaS, e-commerce and marketplace segments. Across those segments we have a deep focus on companies serving the global SMB market. Say hello: info@surepathcapital.com